Final Report Bites

THE BITES – Business plan

2014

SZABIST-BBAEntrepreneurship

Course Instructor:

Fahad Zuberi

Entrepreneurs:

Adnan Mumtaz Ali - 1111216

Alvina Usman - 1111220

Akash Ram - 1111219

Daniyal Jorbai- 1111224

Sooraj Kumar - 1111133

Zehra Ayaz – 1111251

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ContentsIntroduction...........................................................................................................................................................4

Name and address of the company...................................................................................................................4

Company Name: “The Bites”..............................................................................................................................4

The name and contact information of the entrepreneurs:................................................................................4

About the company:..........................................................................................................................................5

Non-Disclosure and Confidentiality Agreement.................................................................................................5

Executive Summary................................................................................................................................................6

Amount of financing:..........................................................................................................................................7

PESTEL Analysis:.................................................................................................................................................7

SWOT Analysis:..................................................................................................................................................8

Legal Concerns:..................................................................................................................................................9

Description of the Venture.....................................................................................................................................9

Mission Statement.............................................................................................................................................9

Vision.................................................................................................................................................................9

Products & Services............................................................................................................................................9

Flavored Drinks..................................................................................................................................................9

Desserts.............................................................................................................................................................9

Savory Items.......................................................................................................................................................9

Location and initial investments..........................................................................................................................10

Production Plan....................................................................................................................................................10

New product or service provided.....................................................................................................................10

Subordinated/supervisors................................................................................................................................10

Blue print of the production process...............................................................................................................11

Future Capital Requirements...........................................................................................................................11

Supplies & costs...............................................................................................................................................11

Organizational plan..............................................................................................................................................11

Shares/Form:....................................................................................................................................................11

Lines of authority and responsibility of each Partner/ Management team-roles/responsibilities...................11

Form of organization........................................................................................................................................12

Share/stake distribution:..................................................................................................................................12

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Board members................................................................................................................................................13

Check signing authority....................................................................................................................................13

Management team-roles/responsibilities........................................................................................................13

Salaries & Bonuses:..........................................................................................................................................13

Marketing Plan:....................................................................................................................................................14

Year 1...............................................................................................................................................................14

Year 2...............................................................................................................................................................14

Year 3...............................................................................................................................................................15

8 P’s OF SERVICE MARKETING..............................................................................................................................16

Result of Pilot Study.........................................................................................................................................18

Measuring parameters:........................................................................................................................................19

Inventory control.............................................................................................................................................19

Production control...........................................................................................................................................19

Quality control.................................................................................................................................................19

Financial Plan.......................................................................................................................................................19

ASSESSMENT OF RISK-ONE ALTERNATE STRATEGY..............................................................................................19

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Introduction

Name and address of the company

Company Name: “The Bites”www.thebites.webs.com

Official Logo:

The name and contact information of the entrepreneurs:

Name Contact number Email address

Daniyal Jorbai 0334-3348494

021-32224837

[email protected]

[email protected]

Adnan Mumtaz Ali 0332-3452511 [email protected]

Akash Ram 0335-3565368 [email protected]

Sooraj Kumar 0332-3871894 [email protected]

Zehra Ayaz 0312-0119584 [email protected]

Alvina Usman 0344-2282528 [email protected]

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About the company:The concept of ‘The Bites’; derived from the increased demand and preference of people towards the

bite sized snacks for parties, meetings and even everyday meals. People nowadays are more health

conscious and think about eating in small portion sizes thus a plan was made to capture these people

and fulfill their demand. People like to have food items that are easy to handle and quick to eat. They

do not like to fine dine all the time. If we specifically target the market of Pakistan then some people

are even unaware of dining etiquettes so they intend to opt for snacks instead of proper meals.

‘The Bites’ provides the people with a large variety of bite sized snacks, from savory to sweet. We

even offer different kinds of drinks for the people to enjoy with their snacks. All the above mentioned

categories can be catered by the products that our company is providing. ‘The Bites’ has planned to

provide the customers with the best quality food items. It is a new trend in the food line that our

company will be planning to serve on a large scale.

Non-Disclosure and Confidentiality AgreementThe undersigned (‘Recipient’), hereby agrees that all financial and other information

(“Information”) that is has and will receive concerning “The Bites” is confidential and will

not be disclosed to any other individual or entity without prior written consent.

The Information shall remain the property of “The Bites” and shall be returned to us

promptly at its request together with all copies forms made thereof.

Recipient acknowledges that no remedy of law may be adequate to compensate “The Bites”

for a violation of this Agreement and Recipient hereby agrees that in addition to any other

legal or other rights that may be available in the event of a breach hereunder, “The Bites”

may seek equitable relief to enforce this agreement in any court of competent jurisdiction.

__________________

Date

__________________________

Signature of Partners

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Executive SummaryThe Bites is a restaurant business where we are offering the bite sized food items which include

variety of savory item, deserts, and shots in drinks. The main idea behind this startup is that

people now a days are more health conscious and because of their love for food either they

compromise on health or restrict themselves from the tasty and spicy food. The Bites is offering

hygienic and low caloric foods for the food lovers and health conscious persons.

The Bites will be located in Zamzama, DHA Phase 5, Karachi. The reason for choosing this

location is that the people residing in surrounding areas like Clifton and DHA frequently visit

Zamzama for eating out. And also people residing there are more health conscious and food

lovers too. Restaurant industry in this area is no doubt is matured and The Bites may face a tough

competition but due to product differentiation and variety we are offering, we will be having a

competitive edge. And mostly food lovers try newly opened restaurants at least once and from

the response we got from the Launch Activity conducted at SZABIST; we have an intuition that

it will get a boost.

We will be hiring experienced chefs who will work as per the rules set by Human Resource

Department like keeping kitchen clean and making food hygienically. They will make sure the

food is tasty and everything they do is as per the rules and same goes for the waiters and other

staff.

We will be investing on marketing of The Bites to attract more food lovers from the

surroundings as well as the Karachiites. We are currently marketing through social platform like

Facebook, Twitter, and Instagram and also we have our website developed which people can

refer to know more about The Bites. Costs of goods sold will be 35% of the total sales and by

subtracting all the expenses and taxes we will be having a profit of approximately 0.4 million for

the year 1 and after adjusting the inflation rate and different growth rates we estimate that our net

profits for the upcoming years will be approximately more than 2 million rupees.

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Amount of financing: 4.124899 million To be exact

60% share divided amongst partners and rest 40% loan to acquired.

PESTEL Analysis:POLITICAL:

Considering the political instability and the uncertainty of the city and also the estimation of risk

for ransom amounts by the mafia.

Our location would help us minimize the political risks and help us grow at a rapid pace.

ECONOMICAL: Any change in interest rates causes the rise or fall in the cost of capital. And

because of inflation people are less likely to spend more on luxury items and the employees will

also ask for a higher salary. Currently the inflation is decreasing so we have opportunity to get a

boost start.

SOCIAL: People have different eating habits but the area in which we are starting our business,

the ratio of eating out in the surroundings is quite good. In Karachi word of mouth plays a vital

role so mostly restaurants get a boost when people start liking products and services offered by

the restaurants.

TECHNOLOGICAL: Restaurant industry is becoming more advanced day by day.

Technological system assists restaurants in managing inventory, orders and customers data and

also saves the costs.

ENVIRONMENTAL: Restaurants may have an effect due to change in climate and weather.

Law and order situation also affects largely on the sales. Restaurants are bound not to through

the wastage on the roads or outside their restaurants but to proper wastage collector.

LEGAL: In Pakistan restaurants have to follow all the policies and laws made by government of

Pakistan to ensure safety of customers and the environment. Restaurants have to maintain the

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records and pay the taxes they are liable for. There are customer laws, tax laws and

environmental laws which they have to follow.

Government laws and regulations are there for restaurant industry in Pakistan. From getting your

restaurant registered to operating you need certain licensing from the government. You are

obliged to follow all the rules and regulations of government. The food offered should be

hygienic, healthy and should meet the food standards set by Pakistan Standards and Quality

Control Authority (PSQCA).

SWOT Analysis:STRENGTHS:

Hygienic and low caloric savory items and deserts.

Desi taste in dishes.

Building emotional relationship with the customers by hiring experienced and courteous

staff.

State of the art environment and the ambience.

Food items at nominal prices.

Good relationship with vendors will reduce costs and we will haveon time delivery from

our vendors.

WEAKNESSES:

Most of our dishes are perishable and they need to be finished as soon as possible.

Rules of safety: Chefs and staff will have to adopt the safety rules in cooking or serving

the food in order to avoid conflicts on hygiene.

Small sized food items when compared to the market.

Limited promotional activities at the start because of lower operating capital.

OPPORTUNITIES:

Introducing more items to the menu.

Adopting new technological advancements.

THREATS:

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Matured market of restaurant industry.

Non-patented products: Our offered menu items can be copied but not the taste.

Low prices by new competitors

External factors like law and order situation and change in weather etc.

Change in the taste of customers.

Legal Concerns: Proper registration under the framework of SMEDA

Policies by Government of Pakistan for partnership agreement

Description of the Venture

Mission Statement Our mission is to provide customers with high-quality food items that are made out of the best

ingredients backed by authentic recipes.

VisionWe are relentless in our focus on 100% customer satisfaction and loyalty, driving sales and

increasing profits. We aim to be recognized as one of the best food product sellers in the next 2

years.

Products & ServicesThe Bites

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Savory ItemsStuffed Chicken Cheese

Cheese Chicken Balls

Mayo bread Rolls

Cold Rolls

Cheese Melts

Mini Burgers

Chicken Shashlik

Beef Donuts

Chicken Donuts

Veggie Donuts

DessertsChoco Donuts

Swiss Jam Rolls

Choco Brownie

Choco Moose

Berry Moose

Mini Lava Cakes

Lava Cookies

Flavored DrinksBlueberry

Orange

Lime

Peach

Strawberry

Apple

Cocktail

Location and initial investments The retail outlet will be rented at DHA phase 5. Our preference is near zamzama commercial

area the main reason of reaching larger traffic. The Bites locations in size will be 950sq feet

Mezzanine floor that will be able to accommodate 80 customers. Our first location will be on the

larger end of this range. The location will feature its own originality in merchandise display and

other brand building attributes. We will equip the outlet with modern furniture and aim

for cleanliness and an open feeling.

The space selection has been chosen based upon the following criteria:

Community size: minimum of 800,000 people within a radius of 8 kilometers.

Near to commercial are of DHA

Easy access

Large percentage of teenagers in the community.

All of these qualities are consistent with The Bites' goal of providing a top quality food

experience. We want "word-of-mouth" to be our best form of marketing, where our customers

value our brand as something exciting and cannot wait to tell their friends and family members

Production Plan

New product or service providedWe will be providing bite sized items in form of platters so consumers could be presented

with varieties along with reasonable price. On quarterly bases new product would be

added to the existing product range.

Subordinated/supervisorsWe will be having managers and supervisors who will be looking after all the procedures

that will be carried out at dine in and take away centers. (Refer to the organizational plan)

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Blue print of the production process On the back stage of production process we will be having our kitchen from where all the

items would be prepared and the front counter would have a representative will take

orders & delivery from our head office; to be distributed via delivery riders.

Future Capital RequirementsInitial investments by all team members in equal ratio and 40 % would be outsourced

capital, in terms of interest free loans (refer to the financial plan)

Supplies & costs All the supplies would be purchased from the wholesalers so that we get the raw

materials at reasonable prices increasing our profit margins; hyper stores with proper

invoice receipts would enable better costing and records. The detail of the cost is

mentioned in the financial plan.

Organizational plan

Shares/Form:The Bite is private limited (PARTNERSHIP) company registered with the registrar.

Lines of authority and responsibility of each Partner/ Management team-roles/responsibilities

Daniyal Jorbai

The line of authority as is the elected leader with the mutual consent of the partners. Accountable

of all the finalization after the group based decisions brought forward. Arranging meetings,

coordinate with the members of the team and assign work to every department, setting up

deadlines for work and take review from every member periodically.

Adnan Mumtaz:

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Production and logistics department is his responsibility -Providing materials for daily operations

and additional needs of the different departments are to be fulfilled under his supervision and

control.

Akash Ram:

All the financing activities including company day to day expenses, making financial statements

and forecasting the company portfolio.

Alvina Usman:

Responsible for marketing the business online and function boost on the social media. In Charge

for managing the twitter account of the bites and face book page actively; this includes the teaser

campaign for new launch of products and regular update of the news regarding bites to better

interact with the target audience.

Zehra Ayaz:

Marketing plan; the finalization & the implementation to be conducted and analyzed at the

closure for measurement of risks and trends of years to come.

Suraj:

Website updating and human resource functioning to be his charge- includes the employee

incentives and bonuses on a timely or seasonal basis.

Form of organization Private ltd partnership venture-

All decisions to be carried forward after the mutual consent of all the Partners

Share/stake distribution: Each partner making equal investments

Profit & loss to be shared equally

Rest finances to be fulfilled by loans

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Board membersAll partners with equal ownership hence subject to equal rights on decisions. Final follow up to

be made by the Head Partner.

Check signing authorityCheck signing authority to the Finance department for amount below 200,000; value exceeding

this amount to be reviewed by the Head.

Management team-roles/responsibilities

Salaries & Bonuses:

Equal share of profitability

30% of the profit to be distributed amongst the partners and the remaining to be

reinvested for further expansion

Bonuses divided on festivals such as Eidul Adha & Eid ul Fitr.

Other bonuses on events where the sales are greater than the sales target structured.

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Marketing Plan:

Year 1

350000

Pre-launch product sampling for 10 days = 100000

The bites will launch its first outlet at DHA phase 5 near zamzama commercial area=

100000

A website will be launched for online delivery purpose= 30000

3 riders to deliver within the radius of 4 KM – Initial boundary limit

Magazine print advertisement = 75000

Delivery timings 12pm to 12 am

10,000 Brochures to be distributed within the radius of 8KM = 15000

Promotional activities in SZABIST, GREENWHICH and DHA suffa =Normal kiosks for

30000 total

Focused towards gathering loyal customers specifically corporate clients who would get

catering for meetings and gatherings from us.

Brochures to be distributed at all the main offices.

Year 2450800

Print Ads in Food magazines and newspapers - Small print ad in famous food magazines

that are monthly such as Good food or Dastarkhan.

Total expense budget set for 160000- mainly to be printed on seasonal basis.

Social Media would be active throughout. – Budget set for 30800; includes one or two

ads on social media.

Posting of kiosks at various points to reach more people:

Dolmen City Mall, first floor near Snog, to gather the crowd who is on the go and can

munch on the bite sized snacks while shopping.

Millennium Mall, to capture the market on the other side of the Market

Kiosks would consist of:

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A glass box for the display of products available

A fryer for giving piping hot products to the customers

A small fridge to cool of the ingredients of the shots and desserts and crockery.

All kiosks would have 2 employees each. One frying the items and one for taking orders

Delivery of items to the kiosks would be done at 11 A.M from the central kitchen.

Expenses:

Per kiosks 130000; includes:

Kiosks setup 38000 each

Rent Cost 55000 each

Employee wages 10000 each x 2 employees per stall.

Rented equipments 15000

Miscellaneous expenses 2000

Year 3 929000

Advertisements in the mediums used before to be continued. Budget allocated 70000.

Kiosks installed at Tariq road and Atrium Mall – Cost same as year 2

Small sized billboard in Defense area and Tariq Road = Budget set to be 600000 per year

Cost per 10 x 12 to be installed at two different locations- contract of 3 months each for

300000 each to be placed prior to the seasonal arrivals such as Eid.

8 P’s OF SERVICE MARKETING

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Product: The products of our company ‘The Bites’ are bite sized food items which include

savory, sweet and drinks (shots) which was flavored soda water. The main items of the menu are

as follows:

SAVORY: Cocktail shashlik, Trio sandwiches, Mini chapli kabab burgers, Potato cheese melts,

Chicken cheese balls, Stuffed chicken, chicken cold rolls and Chicken doughnuts.

SWEET: Mini donuts, Brownies, Swiss jam roll and Chocolate mousse.

SHOTS: Blueberry, Orange, Lime and Peach.

These products were limited to the launch activity held at SZABIST. Further in the future the

product range would be increased as per the consumer demand and the market trend. We would

not keep our products limited to just one bite but would have products called ‘1 bite’, ‘2 bites’. ‘3

bites’, etc.

Price: The items are priced differently. Savory items at PKR 30 each, sweet at PKR 50 each and

shots at PKR 30 each. We even offered deals for our customer to provide them with more value

of money. Deal 1 consisted of 3 savory items and 2 sweet items which was priced at PKR 160

and you would get a shot free. Deal 2 had 6 savory items and 4 sweet items at a price of PKR

320 with 2 shots free.

All the prices mentioned above were for the launch activity only which would revised later

according to the products being offered but at an affordable price.

Place: The launch activity took place at SZABIST 100 right next to the SSC room where we

catered to the students and faculty of SZABIST to make them aware about our company and its

products.

The places later would be modified in the near future. Kiosks would be placed in different malls

such as DolenCity Mall, Atrium Mall and Millennium Mall. If the finances reach a point where

we are making profit we would make Café for ‘The Bites’ at Zamzama, where there is a lot of

footfall as people who come for shopping prefer to have so light snacks on the go so this would

the best and reasonable option that they would get there.

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P romotion: The promotion strategy for our launch activity was that before the day of the final

event we did a brand activation activity at SZABIST, where we went to people and told them

about our company and gave them the event details so that they visit us. We even took their

photos with our logo to create an attachment and likeness for our product which had been put up

on our FB page. On the activity day we had a stall setup which had a huge logo on the top to

make people connect and increase awareness. The stall had displays of the food items to tempt

the students to come and buy our products. A proper menu had been designed for the people to

choose from. All the team members were on a rotational duty of going around the campus to tell

people about our stall and make them come to our stall. The other promotional strategy used was

the social media that is we had a FB page, Twitter account and we were on Instagram as well.

We even made a website for our company ‘The Bites’. This helped in increasing the awareness

and even promoting our brand.

The future promotions would be all the social media to be continued. Further we would be

distributing brochures to our potential clients. We would even have advertisements in

newspapers and food magazines to capture a larger crowd. Billboards would be put up once we

launch our café. Locations of the billboards would be in 20 KM radius of our Café so the people

look at it and get interested in visiting us. The advertisement would be done on a monthly basis.

This how we will promote our company.

People: The target markets for our launch activity were the students and faculty of SZABIST

only.

The overall target markets for our products are different groups of people. It would consist of

offices where they can use our products for the meetings that they have as are products are easy

to eat and bite sized so eating it during the meeting would not be a hassle. Cutlery would not be

even required. Then other groups that we are targeting are the females who love to have ‘Kitty

parties’, which are very much in nowadays. On such parties the ladies prefer to have light snacks

and our products would fit in perfectly. Housewives can also be one of our target audiences as

they can take these items for their children’s and husbands lunch boxes. Other than this people

who are health conscious and like to have smaller portions of different items even sweet, would

be comfortable in having our products.

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P rocess: The process for the delivery of the products on the day of the activity was that we had

brought a fridge for the cooling of the soda water and flavors of the drinks. The savory items

were brought in semi cooked form. We had a hot plate for the cooking and heating of these

items. The sweet items were ready to serve placed in see through boxes.

The delivery process for our products to our kiosks, that would be put up in the future, would be

done from a centralized kitchen. The savory items would be sent semi cooked and employees at

the kiosks would fry them completely to serve them hot, the shots would be mixed at the spot

and the sweet items would be ready. Same would be the case for the Café that would have a

kitchen itself that would have chefs for preparing the products as per the orders from the

customers.

P hysical evidence: The physical evidence of the activity was the stall itself which had the logo,

the display of the products and the service was being provided over there only.

In the future the evidence of our company would be the kiosks placed at different malls and then

later would the Café also which would be launched in the second half of the second year.

Product and Quality: The productivity and quality would be maintained by giving our

customers hot and freshly made products on the kiosks and the Café. The raw materials used in

the preparation of the items would be all handpicked by our professional chefs so that the quality

is not compromised at any cost. All the items would be made in a limited number and as per

orders so that we make a fresh n=batch on a daily basis. This would help us in reducing the

wastage as well.

Result of Pilot StudyWe conducted a research before launching the idea about the bite sized snacks. Through our

study we got to know that many people nowadays are in the favor of smaller portioned meals but

like to have a lot of variety for that meal. Not only this people have become health conscious so

they do want to have sweet dishes even but the size should be small, thus our products would be

liked and appreciated by such people as well. So the overall research that we did resulted in a

‘yes’ for our concept of launching the bite sized food items called ‘The Bites’

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Measuring parameters:

Inventory controlAll the raw material will be purchase on weekly basis only the vegetables will be brought daily

according to the requirement so that we will be able to provide the customers with high quality

products.

Production controlThe items, both frozen and fried will be prepare on daily basis according to the orders that we

receive if the item are ordered in a fried version we would get them deliver in a hot box so that

they stay fresh. Professional chef will be hired for preparation of these items.

Quality controlThe quality would be maintained through production and packaging process which will be

monitor by the supervisors at every step.

Financial Plan Refer to the Excel Sheet

ASSESSMENT OF RISK-ONE ALTERNATE STRATEGYThe alternate strategy to cope up with the idea of ‘The Bites’ could be that we would change the

theme of our product range from being bite sized to normal size food. Bringing our product

range to normal size items would increase our target audience as more people do like to have

proper meals when eating out. This would bring in more customers for sure. Our target for the

first three years remains in Karachi where people are food maniacs so they love to eat out and try

new outlets. Thus using this idea we can try to survive in the market. Still, if we do not reach a

break-even level than we can utilize the stock we have, try to generate as much revenue as

possible to pay off our debts and then shut down for good. We would exit the market.

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